US Lawmaker Says Federal Deposit Insurance Corporation is Using Banking Instability to Target Crypto

Thus far, three major banking enterprises in the USA have been shut down. However, government agencies have come forward to take stock of the situation and offer bailouts for the depositors of these financial institutions.

There are some financial experts like Barney Frank who claimed that the state has been using banking failures as a way to target the cryptocurrency sector. Therefore, the unrest between the DeFi and government regulators seems to be increasing.

Addressing the matter, Congressman Tom Emmer has called upon FDIC chairperson Martin Gruenberg. Emmer intends to inquire the chief of FDIC about the government’s involvement in limiting banking services to cryptocurrency enterprises.

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Emme opines that government regulators might have some involvement in instructing banks to deny cryptocurrency access to cryptocurrency investors.

Barney Frank is a former US representative who joined the board of Signature bank recently. Frank has told the media that the recent banking collapse is painted in a way that conveys an anti-crypto stance of US regulators.

He issued this message sensing that FDIC might be moving in favor of Signature bank which can lead to issues of liquidity. He claimed that the government has used these banking failures as ammo to tarnish the goodwill of cryptocurrencies.

As per Emmer, these incidents have put a veil over the matter of exorbitant interest hikes and unwarranted state expenditure.

He claims that such measures are inconsiderate and can bring about more financial instability. Emmer has also posted a copy of the letter sent to the government on a social media platform.

Tom Emmer also Targets Biden Administration About Unfavorable Monetary Policies that Endanger Crypto

After airing his disapproval of the government regulators, Emmer has directed his criticism toward POTUS. He criticized the Biden administration by claiming that the state has adopted such policies that harm and disable the crypto sector.

He also made these assertions when SVB and Signature Bank were on the verge of collapse. However, New York State Department has told the media that the closure of Signature bank has nothing to do with its crypto-friendly stance.

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He has also opened the discussion about the potential of government intelligence agencies using CBDC as a spying tool. Other legislators believe that the collapse of Signature Bank could be a move from the government to highlight the agenda against cryptocurrency development and adoption.

Speaking on the matter, Frank has mentioned that such big financial enterprises cannot go down on account of changes in fundamentals. New York State has also maintained that the reason for shutting down Signature bank was due to the failure of corroborating documents and data.